When it comes to selling a home, many wish for an all-cash buyer to show up at their doorstep. It just naturally feels easier to sell a home for cash over waiting for a buyer's mortgage loan to go through. When selling a home becomes a big priority, cash buyers can be a saving grace for any home seller.

Whether one's relocating quickly for work or is entering the foreclosure process, they need to sell their home fast. A cash buyer can provide the cash they need quickly and close on the house much faster than a buyer that is using traditional financing. However, before accepting an all-cash offer, it's important to weigh both the pros and cons of doing so.

What is a Cash Home Buyer?

When it comes to buying a house, most people are familiar with getting a home mortgage loan. This is simply due to the fact that most individuals don't have a large chunk of change to spend on a home. However, a mortgage loan is not required to buy a home. If a buyer has enough cash on hand, they can purchase a home out of pocket. There are many investment companies and wholesalers that will go around and make cash offers on homes in attempts to in turn make a profit off of them. 

When selling your home, a cash offer can be submitted by a cash buyer. This means that they won't be using any sort of mortgage loan or any other type of financing option to purchase the property. In most cases, the potential buyer will submit a copy of their bank account to show that they do indeed have the lump sum money easily accessible for the purchase. A cash home buyer can be a saving grace for many who are looking to cash out quickly from their home.

Benefits of Using a Cash Home Buyer

Cash buyers can seem like a dream come true for many home sellers looking to make a quick buck. In fact, cash buyers bring a lot of benefits to the table for both parties. The most common are:

• Lower Risk Of Fall-Through - When one is selling their home, it's a long process. Each time a potential buyer submits an offer that one accepts, there's always the potential for the deal falling through. In most cases, the deal falls through because the mortgage lender decides that they are no longer willing to fund the home buyer. When accepting an offer from an all-cash buyer, one can eliminate this fall-through risk completely.
• Closing Can Happen Sooner - One of the longest periods of any home buying process is waiting for the mortgage lender's approval. For most home buyers, this takes 30 to 60 days from the date of acceptance of the offer. With a cash buyer, there's no delay in the process. One can close on a home the same day they receive the offer if they desire to.
• Great For Unfundable Properties - Mortgage lenders tend to only fund homes that are habitable. They want to ensure that the home stays in tip-top condition throughout the life of the mortgage loan that they grant. For this reason, they won't approve funding on unfundable properties. These include properties that are currently uninhabitable or in need of a large number of repairs.

Disadvantages of Using a Cash Home Buyer

It's true that an all-cash buyer can provide many benefits to a home seller. However, not everything is rainbows and sunshine. Cash buyers do come along with some disadvantages to the home seller. These include:

• Lower Offers - Cash buyers know that they have the upper hand. Most home sellers would rather settle for a cash buyer who is offering them slightly less than the asking price instead of hoping that another buyer using traditional financing gets approved for the loan. For this reason, cash buyers tend to offer a lower purchase price than one will likely get from those using traditional mortgage financing.
• Could End Up Being A Wholesaler - One of the biggest fears that realtors have about cash buyers is the possibility of the person being a wholesaler. A real estate wholesaler is a person who gets a potential property under contract for a low price and then tries to get one of their known buyers to purchase the property. The prices offered just aren’t that good and wholesalers are often looking to take advantage of people in potential financial hardships with severe low ball offers.